President Xi Jinping pledged on Thursday to step up China’s support to Africa with funding of nearly $51 billion. Africa is the world’s fastest-growing continent. China has promised backing for more infrastructure initiatives and creation of at least 1 million jobs.
Beijing showed a desire to move away from funding big-ticket infrastructure. It said it wants to focus instead on selling to developing economies, the advanced and green technologies in which Chinese firms have invested heavily.
Still, Xi told delegates from more than 50 African nations that China would carry out 30 infrastructure projects across the resource-rich continent. He also offered 360 billion yuan ($50.70 billion) in financial assistance.
“China is ready to deepen cooperation with Africa in industry, agriculture, infrastructure, trade and investment,” Xi told delegates at a major China-Africa summit in Beijing.
He called for “a China-Africa network featuring land-sea links and co-ordinated development.” He told Chinese contractors to return to the 1-billion-strong continent, after the lifting of COVID-19 curbs that disrupted its schemes.
Last year, China approved loans worth $4.61 billion to Africa, in the first annual increase since 2016.
Xi said 210 billion yuan of the financing pledge would be disbursed through credit lines. At least 70 billion in fresh investment by Chinese companies will be disbursed. Smaller amounts will be provided through military aid and other projects.
The Forum on China-Africa Cooperation Summit was held in the Chinese capital this year. It chalked out a three-year programme for China and almost every African state.
Besides 30 infrastructure connectivity projects, Xi added.
“China is ready to launch 30 clean energy projects in Africa,” he said. He also offered to co-operate on nuclear technology and tackle a power deficit.
However, the Chinese leader did not reiterate his pledge at the 2021 forum in Dakar. In 2021, he pledged for China to buy $300 billion worth of African goods, only to unilaterally expand market access.
Analysts say Beijing’s phytosanitary rules for market access are too strict. Hence, this makes China unable to meet that promise.
“We are ready to assist in the development of the African Continental Free Trade Area, and deepen logistics and financial co-operation for the benefit of trans-regional development in Africa,” Xi added.
